How have stocks actually done over the past, during shorter periods of time? Below is data showing the total return of large stocks per year over the past five, 10, 20, 30, 40 and 50 years, according to IFA.com
. 5 years: 1.3%
• 10 years: 2.0%
• 20 years: 7.9%
• 30 years: 10.5%
• 40 years: 9.8%
• 50 years: 9.2%
If this is the case then investing in stock market for good return for atleast 10-15 years is not a good idea at all.
Then buy and hold concept of stocks is no longer valid.
Here is what i am thinking of now:
1. You need to buy stocks and sell when you see return of 5% atleaset in couple of months and re invest the return.
2. Buy and Hold may work for retirement accounts like 401k and IRAs as they are for long term but there are also consistent check needed periodically.
3. For 401k and IRA i feel it is always best to invest on high dividend yield stocks which may help boost your portfolio.
4. I also feel investing on real estate which are going to be used for commerical purpose is worth it.
5. Also if we can do real estate ladder (like investing in multiple commercial properties) will help for semi long term financial needs.
6. Also investing in gold either in form of jewelary/stocks/ETFs is also a great idea.
As always adjusting portfolio is very essential in timely manner for not to become victim for financial scams and downturns.